Update: Microsoft has released its first iPhone application, Seadragon. The app is free and lets you zoom into pics from Photosynth and other photos on your iPhone. This is also available on PCs with SilverLight as well. SilverLight will not be coming to the iPhone.

Photosynth is a relatively new service from Microsoft Labs. The service lets you upload multiple photos and then it creates one cinematic panorama 3D 360 degree view. Photosynth analyzes each photo and uses the data to build a model of where the photos were taken. It then re-creates the environment to display the photos. It does seem pretty kool after I tested it out, but you do need to install an application that includes the browser plug-in and the application to create the panorama photos.

Microsoft has just announced Oxite, a new open source blogging and content management platform. Microsoft says the platform is not geared towards competing with WordPress or Movable Type. It includes standard features including comments, ping backs, the ability to create posts and pages, user profiles, there is also support to manage multiple blogs on a single site, and a whole lot more. Microsoft says Oxite is more geared towards developers. The source code can be found here.

Microsoft is a big player and can it easily have hundreds of thousands of people using this product that will also open the door for mass development and adoption. It also shouldn’t be too hard for developers to scale plug-ins and apps from WordPress to work with Oxite. We’ll just have to wait and see if Microsoft decides to push this, which they probably should given its potential for mass adoption.

Jerry Yang spoke in front of more than 1,000 people at the Web 2.0 Summit in San Fransisco where he provided his commentary about the last year and also expressed he and the Yahoo board of directors never at any point had any regrets concerning the failed acquisition with Microsoft. Yang also says that he went back to Steve Ballmer (CEO of Microsoft) to re-interest MS though to no avail. Yang has confirmed Yahoo is not in any direct acquisition talks with Microsoft and he notably refused to comment about a possible acquisition with AOL. We can expect Microsoft’s interest to re-open assuming serious talks develop with AOL. Most importantly, Yang went on to say “to this day, I’d say the best thing for Microsoft to do is buy Yahoo,” and he added: “We’re willing to sell the company.” Very interesting. Yang has been very heavily criticized (probably rightfully so) for not accepting the Microsoft acquisition bid for about $33 per share, considering Yahoo stock is now trading at about $12 and it isn’t expect to recover to $33 anytime soon. In more recent news, Yang also expressed disappointment towards Google who recently dropped the Yahoo ad partnership after antitrust concerns from the US Justice Department and strong critisism from various corporate opponents including Microsoft. Complete information from the Web 2.0 Summit can be found here.